AFSA Provides Testimony on NM All-In Rate Cap
On February 9, AFSA Senior Vice President Danielle Fagre Arlowe provided oral testimony opposing New Mexico SB 66 in a Senate Tax, Business and Transportation Committee hearing. The bill would institute an 36% all-in rate cap, which would include other charges for fees and ancillary products, on loans under $5,000. In the hearing, Arlowe pointed out that the proposed rate caps would cut off large numbers of New Mexico consumers from licensed, safe, affordable credit. The brunt of these consequences will most harshly hit subprime consumers who are often in the greatest need of safe and affordable credit.
AFSA’s Senate testimony follows a letter sent last week opposing SB 66 and raising these concerns. AFSA also previously sent letters opposing SB 66’s House companion, HB 149, and HB 99, which would impose a 36% rate cap on loans calculated under the federal Truth in Lending Act. Arlowe also testified in opposition last week to both HB 99 and HB 149.
February 17th, 2021 by Dan Bucherer